Some LLP Questions

[cwbolton]

Hello, me and a friend are going to start an LLP selling custom built computers and computer parts, but i am confuzed by all the paper work and weither i have to register for VAT or not, what paper work do i need to do to register my business etc? Also, why am i finding it so hard to find a supplier, am i looking in the wrong places? I'm only looking on the net as i don't know where else to go, any tips/advice or places to go would be greately appreciated. Last of all, how old do i have to be to register an LLP?

Thanks for taking the time to read this.
Chris

 

[Michelle Carvill]

Hi there
I've never registered an LLP in the past, but I have incorporated limited companies using http://www.companiesmadesimple.com. Their system is very simple and I think they do LLP's too - so you may want to check out their site or give them a call.
Good luck
Michelle

 

[cwbolton]

Thanks but id rather go through all the paper work etc myself, any one have any idea how much it costs? The forms i have to use? The minimum age?

Thanks

 

[Scalloway]

You could start here on the Companies House website

http://www.companieshouse.gov.uk/about/gbhtml/gpllp1.shtml

You only need to register for VAT when your sales reach £70,000

 

[cwbolton]

You could start here on the Companies House website



You only need to register for VAT when your sales reach £70,000

Yes i do know about the tax threshold, but some companies only deal with VAT registered businesses, also how do i claim VAT back on stock purchases if im not VAT registered?

Thanks

 

[Scalloway]

You can't reclaim VAT unless you're registered. You can register voluntarily.

http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm#5

 

[cwbolton]

So wouldn't it be better for me to register for VAT so then i can claim it back?

 

[Indigo Cherry]

You only need to register for VAT when your sales reach £70,000

That's not quite right! You are only OBLIGED to register for VAT when your turnover reaches £70,000! But the OP should speak to an accountant as there are somtimes great benefits to either register or to not register for VAT when your turnover is lower!

This is called the VAT registration threshold.

Matt

 

[cwbolton]

So wouldn't it be better for me to register for VAT so then i can claim it back?

BUMP. Need an answer please

 

[saxondale]

BUMP.

he was my favourite character


anyway - erm no? it could work out the costs you can reclaim may be a lower figure than the amount of sales your going to loose ( by been 17.5% (at todays rate) than your nearest competitor who isnt registered) in which case the "saving" has actually cost you money.

speak to an accountant.

 

[Scalloway]

So wouldn't it be better for me to register for VAT so then i can claim it back?

It depends on who you are selling to. If you are selling to businesses they will be able to reclaim the VAT so being VAT registered makes little difference to them. If you are selling to private individuals then they cannot reclaim the VAT so you prices may have to rise to maintain your profit margin therefor they may become less attractive.

 

[sanjiv]

So wouldn't it be better for me to register for VAT so then i can claim it back?

Not unless you are making a loss. If you claim VAT on purchases and pay VAT on sales, then you are in effect just paying VAT on your profits overall.
If you are doing B2B, then you may seem more reputable if you are VAT registered though.

 

[saxondale]

Not unless you are making a loss. If you claim VAT on purchases and pay VAT on sales, then you are in effect just paying VAT on your profits overall.
If you are doing B2B, then you may seem more reputable if you are VAT registered though.

are you VAT registered Sanjiv?

 

[sanjiv]

are you VAT registered Sanjiv?

No I'm not.